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Council of State
People's
Republic of Kampuchea
DECREE No. 38 D
REFERRING TO CONTRACT AND
OTHER LIABILITIES
This Decree was adopted by
the Council of State in Phnom Penh on October 28,
1988
-
Seen the Constitution of the People's Republic
of Kampuchea (PRK);
-
Seen the Law on the Organization of the
National Assembly and the Council of State of the PRK and its promulgation
by Decree No. 04D, dated February 10, 1982;
-
Seen the Law on the Organization of the Council
of Ministers of the PRK and its promulgation by Decree 03D, dated February
10, 1982;
-
Seen the Law on the Formation of the Judiciary
and Prosecutor’s Office and its promulgation by Decree 02D, dated February
10, 1982;
-
Seen the Law on the Establishment of the
People’s Supreme Court and the Prosecutor General's office attached to the
People's Supreme Court, and its promulgation by Decree 28D, dated July 31,
1985;
-
Seen the Decree 34D, dated August 26, 1987, on
the Organization of the People's Supreme Court and the Prosecutor General's
Office attached to the people's supreme court;
-
Seen the Decree 07D, dated July 13 1982,
regarding the competency and procedure for adoption of laws and regulations,
and
-
pursuant to a request by the Council of
Ministers, it is hereby decided:
CHAPTER 1: CONTRACTS
SECTION I: GENERAL PROVISIONS
Article 1:
A contract is an
agreement between two or more persons to create, change or terminate one or
more obligations which bind them.
In the above
definition, a person may be a natural person or a legal entity. A legal
entity can enter into a
contract through his/her own
representative.
Article 2:
A contract shall
bring to the contracting parties both bring personal and social benefits.
the contracting parties shall deal in an atmosphere of trust and honesty,
respecting the social ethics particularly the elimination of the “
exploitation of one party by the other” concept.
section ii: validity and
form of the contract
Article 3:
A contract is valid
provided that it:
-
arises out
of a real and free
agreement.
-
is made by parties who have capacity to enter
into a contract.
-
has a subject
matter that is certain, possible to perform, lawful, and consistent
with public order and good customs.
Article 4:
Contracts can be made
orally or in writing .
The law shall set up precise formalities in making a contract. Every
contract not consistent with the formalities fixed by law shall be deemed
void. Except where there is any provision to the contrary, contracts
involving money, or item(s) worth more than five thousand Riels must be in
writing.
section iii: voidness of
contracts
Article 5:
The following
contracts shall be deemed void when
-
it is illegal, and not consistent with public
order or good customs.
-
it is contrary to social interests or violating
social ethics.
-
a contract whose subject matter is impossible
to perform.
Article 6:
The following
contracts shall be deemed voidable when
Article 7:
An agreement that is
the result of mistake, duress, or fraud is not a valid agreement.
Article 8:
Mistake shall be a
ground for avoiding a contract if there is mistake as to substance of the
object which is the subject matter
of the contract. Mistake as to person can not be a ground for avoiding
a contract except where the identity of the person is the
basis of the contract.
Article 9:
Violence is a ground
for avoiding a contract if such violence is in the form of mental or
physical duress against a party to the contract, his/ her husband or wife,
any ascendants, or any descendants of the party.
Article 10:
Fraud is a ground for
avoiding the contract when there are acts of deception, dishonesty, or
misrepresentation committed by one party to the contract without which the
other party would not have entered into the contract.
Article 11:
When entering into a
contract, should any party take advantage of the situation of another party
with undue profit, then the aggrieved party can always sue to rescind the
contract.
Article 12:
When making a
contract, if there is a difference between the value of the subject matter
offered by one party and the value of the consideration in return, then the
aggrieved party can sue to rescind the contract on the ground that he/she
never intended the difference to be a gift.
Article 13:
A party who asserts
that he/she entered into a contract because of mistake, duress or fraud, in
order to avoid the execution of his/her obligations in the contract, shall
have to prove this matter.
Article 14:
People who have fully
reached 18 years of age can enter into a contract at any time, except
detainees as provided in the law.
Article 15:
Minor under 18 years
of age can not create rights or duties and especially can not enter into a
contract without consent from his/her legal guardian.
A contract by a minor
without prior consent from his/her
legal guardian can be executed on condition that his/her guardian has agreed on such a contract after it has been
entered into by the minor, but all contracts made by a minor to meet every
day life needs shall not require the consent of his/her legal guardian.
Article 16:
A party who enters
into a contract with someone who lacks capacity cannot attempt to get out of
his/her contract obligations on the ground of incapacity of the other party.
Article 17:
The subject matter of
a contract must have a commercial value. Their kind, quality and quantity
shall be clearly described.
Future happening can
also be the subject matter of a contract. However, one cannot contract to
sell an inheritance of a person who is still alive even with his consent.
Article 18:
Any person can sue to
absolutely rescind a contract defined in article 5, at any time .
Article 19:
Where a contract is
voidable because of incapacity, mistake, duress, or fraud, a claim to avoid
the contract can be made by the aggrieved party or by any person who has
lawful interest in the claim. The aggrieved party or any person who has a
lawful interest in the claim
shall notify the other party. The party receiving the notification shall
reply without delay.
After the
notification the aggrieved party or any person having a lawful interest in
the claim can sue to rescind the contract within a maximum period of 12
months.
Article 20:
The right to sue to
rescind a contract as provided for in Article 19 shall cease to exist if,
after suing, the party who has such a right agrees to carry out his/her
obligations or agrees, in writing, to withdraw the action.
Article 21:
In the case where
there is nullity of a contract, the situation prior to entering into contract shall be restored.
section iv: effects and
interpretation of the contract
Article 22:
A contract is a
legally binding agreement between the parties. Amendments to the contract
can only be made with the consent of both contracting party.
A contract shall be
executed with honesty and according to the will of the parties.
A contract binds only
the parties to the contract.
Article 23:
If the contract is
not clear in meaning, that contract shall be interpreted according to common
practices or customs of the
place where the contract has been made, but the interpretation shall not
conflict with the provisions of this law. If there is any ambiguity, the
contract shall be interpreted in favor of the obligor party.
Article 24:
The obligor party
shall fulfill his obligations under the contract by payment from his
personal and real properties available now and in the future.
section v: statute of
limitations for contracts
Article 25:
Except where the law
prescribes differently, obligations resulting from a contract shall be
deemed to have expired if the obligee party has not sued for performance
within 5 years of the date defined in the contract, or where the date is not
defined in the contract, the date of entering into the contract shall be the
date.
Article 26:
The limitation period
shall be postponed if the obligor party is absent from his/her residence and
this absence has been certified by the local authorities according to the
law.
Article 27:
A obligor or
guarantor can assert the statute of limitations. If the obligor or the
guarantor fails to assert the statute of limitations, then the People's
Court can do so on their behalf.
Article 28:
A debtor or the
guarantor who executes his/her obligations under the contract after the
limitation period has expired can not then make a claim for the amount of
money or value given on the grounds that the limitation period has expired.
section vi: the execution
of the contract
Article 29:
Obligations in the
contract shall be carried out in a timely and proper manner particularly
with regard to quality, quantity, place, and duration prescribed.
Article 30:
A party to the
contract is
Article 31:
An obligee shall not
be compelled:
-
to accept an object other than that which
he/she is entitled to receive even though its value is equal or higher.
-
to accept the execution of part of the
contract. But depending on the goodwill and the difficulty of the obligor,
the People's Court can extend or delay the time for execution of the
contract and make an order to suspend the obligee’s action. In such a
case, the reasons for the decision shall be clearly stated, and the
People’s Court shall exercise this power with great care.
Article 32:
The execution of the
contract shall take place at the location of the obligor if the contract has
not specified a place.
Article 33:
If there is no specific duration of time within
which to execute the contract, then the obligor can pay or provide at any
time, and the obligee can request payment at any time.
CHAPTER II: SOME FREQUENTLY USED
CONTACTS
SECTION I: SALE
Article 34:
A sale is a contract
in which one person has the obligation to transfer ownership of a subject
matter or right to another person who has the obligation to compensate for
the value of that subject matter or right.
Article 35:
It shall be deemed void:
-
the sale of another's property.
-
the sale by a husband of his spouse's belonging
and vice-versa.
-
the
sale of joint-tenancy property "that can not be divided " by
one co-owner without the consent of the other
co-owner.
1.
obligation of the vendor
Article 36:
The vendor shall
maintain the subject matter to be sold in good condition until the due date
for delivery so that he is able to execute his obligations under the
contract, namely the delivery of the subject matter.
Article 37:
The vendor shall not
change or modify the subject matter to be sold by any means from the date of
the sale until its delivery.
Article 38:
The vendor shall be
liable for damage occurring to the subject matter to be sold up until the
time of delivery. The sale can be canceled if the item has been lost or
substantially damaged prior to delivery or when the vendor can not find a
substitute. If the sale has been canceled, the vendor shall pay damages to
the purchaser relating to the loss of the subject matter to be sold or any
damages resulting from the vendor’s fault.
Article 39:
The vendor shall
inform the purchaser of all essential attributes and other substantial
conditions relating to the subject matter to be sold, particularly
information concerning rights that others have in the subject matter, if
any. The vendor shall hand deliver to the purchaser all documents relevant
to the sale.
Article 40:
The vendor shall hand
over not only the main subject matter but also any derivatives and
accessories.
In the case of real
property sale, the delivery of the property deed is deemed to be delivery of
that real property. Expenses incurred in the delivery shall be the
vendor’s responsibility unless otherwise stated in the sale contract.
Article 41:
Regarding real
property, the conveying of the vendor's rights to the purchaser is deemed
valid providing that the sale deed has been certified and registered. From
the certification and registration date, a third party has no rights to the
property. Regarding personal property, the conveying of the vendor's right is deemed valid and a third party has not right
to object from the time the personal property is delivered into the
hands of the purchaser except where the sale is done through certified deed.
In the latter case, the third party can not object from the day the deed has
been certified.
Article 42:
The vendor is not
responsible for any external defects but shall be liable for latent defects
in existence prior to the sale. If the purchaser can prove that such defect
existed prior to the sale, then the purchaser can ask to rescind the
contract or to reduce the price.
Where the purchaser
refrains from buying or asks to reduce the price, the purchaser shall bring
his claim within 1 year of the
date of delivery. If no claim is brought within 1 year, the purchaser's
silence shall constitute agreement.
Article 43:
The vendor shall
guarantee the purchaser protection from any action by a third party to
deprive the purchaser of the subject matter, such action being a third party
claiming a right to the subject matter.
Article 44:
In the event of a
third party threatening to sue to deprive the purchaser of the subject
matter, the purchaser can refer the third party to the vendor immediately.
The vendor, by any means, shall prevent the third party from bringing a
claim against the purchaser otherwise he shall assure that the purchaser
defeat the third party’s claim through a court decision.
Article 45:
If the vendor, so
called upon by the purchaser to act on his behalf, succeeds in resolving the
problem with the third party, the purchaser is not entitled to damages. If
the vendor is unable to resolve the situation, then the purchaser shall
proceed to legal action.
Article 46:
If the court decides
to deprive the purchaser of the subject matter, the vendor shall return the
amount received to the
purchaser. In addition, the vendor shall be liable for damages. The amount
of damages shall include the loss from the contract and order relevant
expenses incurred since the date of the sale.
Article 47:
In the event of
vendor’s death, his obligations shall fall to his heirs.
Article 48:
If the vendor
obtained the subject matter by way of a felony or misdemeanor, then the
purchaser, when he is so aware, can ask to rescind the contract even though
there is no threat from a third party to deprive the purchaser of the
property.
All contracts
contrary to this Article shall be deemed void.
Article 49:
If the same subject
matter has been sold successively to many persons the last purchaser shall
be revert back to the immediate vendor to guarantee his rights.
This vendor, if need
be, shall revert back to his immediate vendor in the chain of title.
2.
obligations of the purchaser.
Article 50:
The purchaser shall
pay the contract price on the day and at the place already determined .If
the date and the place are not stipulated in the contract, payment shall
take place at the place of delivery.
Article 51:
The contract can
impose on the purchaser an obligation to pay interest on the contract price
if payment is late. The interest rate
shall not exceed 5% per annum. Should the interest rate not stipulated in
the contract, the purchaser is liable to pay only the price mentioned in the
contract, but where the subject matter yields income or profit, the interest
shall be calculated according to the rate set by law.
Article 52:
If the purchaser has
received the subject matter, and if a third party brings a claim to deprive
the purchaser of the subject matter, then the purchaser can postpone
payment. The purchaser shall pay the vendor only if and after the problem
with the third party is resolved.
Article 53:
The vendor
is entitled to retain possession of the subject matter until the
purchaser delivers payment.
Article 54:
On the due date if no
payment is made by the purchaser, the vendor can rescind the contract if he
does not wish to bring an action for
payment. As long as full payment is not made, the vendor can always rescind
the contract.
Article 55:
The rescission of the
contract requires both contracting parties to return to each other what they
have received. The purchaser shall return the subject matter with any
interest and income gained. The vendor shall pay back the amount paid by the
purchaser and shall pay interest according to the rate provided by law.
section ii: interest
bearing loan
Article 56:
An interest bearing
loan is a contract whereby one person delivers money to another person and
the latter is obligated to repay that amount together with an additional
amount according to the duration of the contract.
Article 57:
The contract shall be
in writing. The contract shall clearly state the names of the parties,
residence of the parties, loan amount, amount of interest, loan duration and
maturity date. The borrower shall sign his name to the contract.
Article 58:
If the maturity date
and the interest rate have not been provided for in the contract, it is
presumed that the parties agree to contract for 1 year period without interest.
Article 59:
A lender shall be
allowed to charge interest on a loan provided that there is an agreement to
this between the contracting parties. The interest rate shall not exceed 5%
per annum unless otherwise provided by law.
Article 60:
Any interest
overcharged by the lender during the debt period shall be deducted from the
principal amount. If the repayment is in excess of the principal amount and
the interest allowed by law, the creditor shall be compelled to refund such
excess to the borrower together with interest calculated from the date of
repayment by the borrower.
In this case the
lender will be criminally liable according to the provisions of the criminal
law in effect.
Article 61:
A lender cannot
demand repayment prior to the due date. In the event of a borrower’s
death, repayment of the entire debt can be demanded immediately by the
lender and the obligation for repayment shall pass to the heirs of the
deceased who shall be bound to pay the outstanding debt out of the
deceased's estate and before the estate is distributed.
Article 62:
The lender shall
deliver the loan deed or document certifying payment to the borrower when he
repays the loan fully.
Article 63:
A
interest bearing loan relating to personal property must comply with the
provisions regarding the loan.
section iii: secured
personal property
Article 64:
A secured personal
property contract is a contract whereby a debtor delivers his personal
property to a creditor to be held as security for a debt.
A creditor in
possession of such secured property is entitled to be paid out of the
proceeds of the sale of such property in priority to all other creditors.
Article 65:
A secured personal
property contract must be in writing. The contract shall only be considered valid when the
creditor is in possession of the secured property.
The amount of the
debt and the secured property
must be specified and described clearly in the contract. If the contract
fails to specify the amount of interest and the date of payment, the debt
shall be considered to have no interest for one year from the date the
contract is signed.
Article 66:
A creditor is not
entitled to dispose the secured personal property as he pleases. The
creditor is obligated to take reasonable care of and preserve the secured
property. In the event that the secured property is damaged or lost through
the creditor’s fault, he must
repair the damage or compensate the debtor for the loss of, or damage to,
the secured property.
Article 67:
Unless otherwise
stipulated in the written contract,
a creditor may not use or take profit from the secured personal property.
The creditor is allowed to receive only the profit from the secured loan.
Such profit shall be used for necessary expenses.
If a creditor uses
the secured property in breach of the terms of the contract, the debtor may
file a complain to withdraw the secured property.
Article 68:
If the creditor
disposes of the secured property without the prior consent of the debtor,
the creditor shall be criminally liable under the provisions of the criminal
law in effect.
Article 69:
When payment is due
and the debt is fully paid, the creditor must restore possession of the
secured property to the debtor. If a portion of the debt is still
outstanding on the due date, the creditor may still maintain possession of
the secured property until the outstanding balance is paid.
Article 70:
When payment is due
and the debtor does not fulfill his obligations, the creditor may submit a
request to the People's Court to have the secured property liquidated.
The proceeds acquired
from the sale the secured property shall be paid first to the creditor who
is in possession of the secured property. The balance of the sale proceeds
shall be paid to the debtor, or paid to any creditors to whom payment is
due.
If the proceeds from
the sale of the secured property are not sufficient to satisfy the debt,
then the debtor still remains
liable to the creditor for the outstanding balance.
Article 71:
A personal property
secured contract shall be considered void if the contract stipulates that
the creditor shall become the actual owner of the secured personal property
in the event that the debtor fails his obligations under the contract .
section iv: contractor
contract
Article 72:
An Contractor
contract is a contract whereby one party undertakes to perform the work for
another party for a fee proportionate to the work.
Article 73:
If the fee is not specified in the contract,
the court shall determine the fee according to customary practices at the
place where the work was
performed.
Article 74:
The work must be
clearly described in the contract. If the work to be performed is not
performed in compliance with the terms of contract, the hiring party may:
a)
either not accept the results
of the work in which case the contract may be determinated, or ask the
contractor to pay for damages and other compensation for any loss, if any;
b) require
the contractor, at his own expenses, to make the necessary adjustments
within a specific time frame agreeable to both parties; or
c)
accept the works by reducing the fee.
Article 75:
If the time for
completion of the work is specified in the contract and if the work is not
completed within that period of time, the contract may be terminated
notwithstanding the possible damages which the hiring party may claim for.
However,
if delay in the work results from a force majeure, the hiring party
may not claim for damages.
Article 76:
If the hiring party
fails to advance money or supply raw materials within a certain time frame
as stipulated in the contract, he may not terminate the contract on the
basis of the work delay. The contractor can cancel the contract on the
ground of such delays. In such a case, the contractor is entitled to receive
a reasonable fee for the work
that he has already completed.
Article 77:
The hiring party may
terminate the contract at any time before performance has been completed,
provided he pays to the contractor the fees and other expenses related to
the work already performed.
Article 78:
If the work is
destroyed before it is completed through the contractor’s fault and if the
hiring party has paid the contractor in advance and/or supplied materials,
the hiring party is entitled to receive compensation equal to the value of
the loss and other expenses which he has paid toward the works. However, if
the damages is caused by a force majeure, both contracting parties have no legal recourse against each other .
Article 79:
The contractor shall
be liable for the performance of the works by his employees.
Article 80:
If the work is
completed, the contractor may collect his fees upon delivery of the
contracted work. Payment of the fee shall be deemed to be an implied
acceptance of the work done.
Article 81:
If, after delivery of
the work to the employer, any defects in the work becomes apparent as the
result of the contractor’s fault, the contract can
The hiring party may
only claim where the defects becomes apparent during the period under
warranty. If the period of warranty is not stipulated in the contract, the
hiring party may claim any time within three years from the date of
acceptance of the work.
Article 82:
Where the contractor
is a natural person and where the contractor dies, the contract shall be
void.
section
v: carrier contract
Article 83:
A contract for
carriage is a contract whereby a person who is a carrier undertakes to
transport passengers, luggages or goods from one place to another for a fee
determined by an agreement of the parties or a fee determined by the state .
Article 84:
Where the carrier
incurr delays in starting his mode of transports, a consignor is entitled to
terminate the contract and require the carrier to pay
-
the transportation fees and other advances to
other substitute carriers,
-
compensation for any damages caused by delay in
delivery, loss or destruction of the transported luggages or goods, or
decrease in price caused by such delivery delay.
Article 85:
Where the carrier
incurr delays in the delivery, a consignor is entitled to terminate the
contract and require the carrier to pay
-
the transportation fees and other advances to
other substitute carriers,
-
compensation for any damages caused by delay in
delivery, loss or destruction of the transported luggages or goods, or
decrease in price caused by such delivery delay.
Article 86:
A carrier is liable
for the loss of ,or damage to, the transported luggages or goods. A carrier
is also liable for any accidents to the passengers during his transport.
A carrier is not
liable if the injury is caused by a force majeure or by the negligence of
the passengers themselves.
If the luggages or
goods being transported are stolen, the carrier shall be liable to pay for
the stolen luggages or goods.
Article 87:
A carrier is liable,
with respect of the luggages or goods, for any loss or damage that is not
caused by a force majeure or by the natural destruction of the luggages or
goods themselves.
The carrier is
particularly liable for any loss or damage resulting from unreasonable
delays in the transport.
Article 88:
Any action for
compensation for loss or damage shall be commenced within one year from the
date an owner becomes aware that the luggage or goods have been lost or
damaged or from the date passengers become victims.
SECTION VI: BAILMENT CONTRACT
Article 89:
A bailment contract
is a contract whereby a person (the "bailee") keeps in custody the
personal property of another person ("the bailor") gratuitously or
for a fee, and returns that property to the bailor or to a person clearly
designated by the bailor at a specified time or at the time when the
property is demanded back.
Article 90:
As a fundamental
rule, if no fee is specified in the contract, a bailee shall receive no fee.
Article 91:
A bailee must
preserve and return the bailed property at a specified time or at the time
when the bailor demands it back.
The bailee is not
entitled to use the bailed property without the authorization of the bailor.
Article 92:
A bailee is liable
for any damage or loss to bailed property resulting from fault on the part
of bailee.
If the bailed
property is damaged or lost by reason of a force majeure, no compensation
shall be awarded.
Article 93:
If the bailment is
for a fee and the bailed property is lost by reason of theft, a bailee is
bound to pay compensation.
If the bailment is
gratuitous and the bailed property is lost by reason of a theft, the bailee
is not bound to pay compensation if the bailee has sufficient evidence
proving that he carefully safeguarded the bailed property.
However, a hotel
owner, store owner or restaurant owner is liable for the loss through theft
of the property of its guests or customers where such property is kept in
the custody of the hotel owner or restaurant owner.
section vii: loan for use
Article 94:
A loan for use is a
loan without any interest or fee. A person who lends property to someone
else for use retains ownership in the property.
Article 95:
A borrower may not
sell, exchange or lend the loan property without the consent of a lender.
Article 96:
A borrower must use
the loaned property in a good and proper manner, safeguard it as if he is
the owner and use it in manner consistent with its purpose.
The borrower is
liable for the expenses of safeguarding and maintaining the loaned property.
Article 97:
If the loan property
is damaged or lost by reason of a force majeure, the borrower is not liable
for any compensation. However, where the damage or loss is the result of the
borrower’s fault, the borrower shall be liable for compensation to the
lender.
Article 98:
A borrower must
return the loaned property to the lender at the time specified in the
contract. If no time is specified in the contract, the lender may demand the
return of the loaned property at any time.
Article 99:
If a borrower
improperly uses the loaned property in a manner not consistent with its
normal function, the lender may immediately demand back his property even
prior to the time for return as specified in the contract.
section viii: lease
Article 100:
A lease is a contract
wherein a lessor promise to lease his property for a fee to a lessee to use
temporarily.
The property to be
leased may be either real property or personal property.
Article 101:
The duration of a
lease may or may not be limited, where the duration of the lease is not
limited, the duration of lease may not exceed 12 years.
A lease contract
which has as its duration a period of more than one year must be in writing.
Article 102:
Where a lease
contract is not in writing and one party denies the existence of the lease,
the evidence to prove the lease shall be based on the testimony of witnesses
so long as the duration of such lease contract does not exceed one year.
Article 103:
A lessor shall lease
to a lessee only property which is in good condition so as to prevent any
incidents that may cause the lessee
undue problems, and shall guarantee the lessee protection from claims of any
third person who asserts any right to the leased property such as a right of
mortgage.
Article 104:
A lessor is liable
for major repairs to the leased property except where otherwise provided by
law or in the contract.
Article 105:
A lessee shall pay
rent according to the price fixed in the terms of the contract, shall use
the property in accordance with its normal function and for the term
specified in the contract, shall maintain the leased property in good
condition and shall be liable for any minor or simple repairs except where
otherwise provided for in the law or the contract.
Article 106:
When discharging the
contract, the lessee shall return the leased property to the lessor in the
same state or condition as when he took the property.
Article 107:
A lessor may
terminate the contract if a lessee does not perform his obligations or if the lessee improperly uses the leased property
in a manner inconsistent with its normal function or uses it in a manner
which causes damage to the leased property
Article 108:
A
lessee may not sublet the leased property to any other persons
without the consent of the lessor except where otherwise provided for in the
contract.
Article 109:
A lessee who sublets
the property shall still be bound by the same obligations under the contract
with the lessor, and in particular shall be liable for the sub-leassee
regarding unpaid rent, and any destruction or damage to the leased property
resulting from the sublease.
Article 110:
Where a lease
contract has no limited duration period, a party may not terminate that
contract unless there is notification in advance of at least one month or at
most two months.
Article 111:
Where a lessor dies,
the contract remains in effect. If a lessee dies, the contract shall not
remain in effect. However, the contract shall remain in effect if the
lessee's heirs want to continue with the lease contract.
section ix: contract of
suretyship
Article 112:
A contract of
suretyship is a contract whereby a third party called a "surety"
agrees with the creditor by contract to undertake or to perform the
obligations of the debtor in the event that the debtor fails to perform his
obligations to the creditor. This contract shall be in writing.
Article 113:
One debt may have any
number of sureties.
Article 114:
Any contract of
suretyship relating to obligations which are void by law shall be of no
effect. But if such voidness results from the debtor being a minor, then the
contract shall be deemed valid.
Article 115:
Legal action against
the surety can be taken either concurrently with an action against the
debtor, or later.
Article 116:
After the decision of
the People's Court, the surety can request that the properties of the debtor
be seized prior to the surety's property.
Article 117:
After the sale of the
debtor's properties, if the amount obtained is not sufficient to satisfy the
debt, then the surety shall be liable for the balance.
Article 118:
In a case where there
are many sureties, each surety shall the liable for the entire debt as
though there were only one surety. All sureties shall be jointly liable for
the payment of debt.
Article 119:
Where the surety has
paid the debt of the debtor, all rights vested in the creditor shall pass to the surety. The surety is entitled to
demand from the debtor repayment of the amount he has paid, as well as any
interest and other expenses incurred from the date the debt was paid.
Article 120:
Where one surety pays
the debt of the debtor, and the debtor is in a state of insolvency, this
surety can take legal action to recover such payment from any other sureties
who shall in turn pay their share individually.
CHARTER
III OTHER LIABILITIES
Article 121:
Any person who causes
damages to others by reason of his own fault, shall be liable in
compensation for such damage. Even where the damage is caused by involuntary
acts such as carelessness or negligence, the offender shall be liable.
Article 122:
The insane and minors
under 14 years old are deemed incompetent. These persons shall not be liable
for damage they have caused to others.
Article 123:
Parents, guardians,
and other persons who are in charge of or take care of incompetent persons,
shall be personally liable for damage caused by those incompetent persons.
Article 124:
Minors aged over 14
years but less than 18 years shall be
liable for damage they have caused to others. To compensate for the damage
such minors and their parents or guardians shall be jointly liable. In a
case where the minors have no funds or no property out of which to
compensate for the damage, then their parents or guardians shall pay
instead.
Article 125:
State, social, and
collective organizations or enterprises shall be liable for damage resulting
from the actions of their officials, staff, workers, at the time of, or
while performing work for their employer.
Article 126:
Employers shall be
liable for damage caused to others, due to acts committed by their employees
during, or at the time of, performing work for the employer.
Article 127:
Owners of animals, or
person who use animals, shall be liable for damage caused to others by such
animals while under their control or where such damage occurred during any
time that the animals had escaped or were lost.
Article 128:
Property owners shall
be liable for damage caused to others if such damage is due to the owner
negligently failing to properly maintain, control or repair the property.
Article 129:
Where damage is
caused by a group of offenders, that group shall be jointly liable to the
victim. In some cases, the People's Court can decide that each offender
shall compensate the victim in proportion to his level of participation in
the commission the offense.
Article 130:
Where an offender who
is jointly liable with others has paid by himself the whole compensation, he
can request a proportionate contribution from the others according to their
level of their involvement in the commission of the offence.
Article 131:
Where an organization
or a person is responsible for damage caused by another person, that
organization or person is entitled to take legal action against that other
person to recover the damages.
Article 132:
In a case where the
damage is caused partly by the victim, he shall be liable for his part of
that damage.
Article 133:
Any person who has
caused damage to others is not liable to bear the responsibility resulting
from such damages if:
-
The
damage was caused by a force majeure,
-
2.
Article 134:
If the damage occurs
in a situation where the victim voluntarily agreed to assume the risk of
such damage, and if it does not affect or threaten the social interests, no
compensation for such damage will be awarded.
Article 135:
The limitation period
for claiming compensation for damages will be limited to three years.
CHAPTER IV: FINAL PROVISIONS
Article 136:
All contracts which
have been signed before the promulgation of this Decree shall be solved
through the policies of the Party and the State, or through customs and
traditions.
The settlement of the
above said contracts is available only for five years from the date this
Decree become effective.
Article 137:
The Council of
Ministers, the People's Supreme Court, the Prosecutor General attached to
the People's Supreme Court shall be responsible for the implementation of
this Decree within their respective capacities .
Article 138:
This Decree shall
become effective upon its promulgation.
Phnom Penh, 28 October 1988
For
the Council of State
President
Signature
and Seal
HENG
SAMRIN
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